Smith guided the Saddlers to victories over Stevenage, Portsmouth, Preston and Bournemouth last month before those four impressive wins were rounded off by defeat at Colchester.
Walsall have since got back to winning ways in February and January's exploits have helped contribute to an overall run of eight wins in the club's last 10 games, moving the midlands outfit away from a potential relegation battle and into play-off contention.
Panel member Alan Curbishley told the Football League's official website: "It's been a great month for Walsall with a very good run of results, including an emphatic win against high-flying Bournemouth.
"Dean Smith has successfully guided his side to the top half of League One and are now potentially eyeing-up a play-off spot."
